Hyderabad’s real estate : is quickly rising as a popular location for real estate investments, outpacing Mumbai and Bengaluru. This city has a lot to offer with its mix of history, culture, and modernity, including attractions like the Charminar, Hussain Sagar, and a thriving IT corridor. In February, Knight Frank India conducted a study that revealed over 5,000 residential property registrations in Hyderabad, totalling over Rs 2,800 crore. The city’s Real estate market shows a positive outlook with a stable number of registrations in the Rs 25-50-lakh category and an increase in high-value property registrations from the previous year.
According to the Knight Frank India study, there is an increased demand for both larger and smaller homes in Hyderabad’s residential market. Properties with a ticket size of Rs 1 crore and above made up 10% of sales registrations in February 2023, compared to 8% in February 2022. Additionally, registrations for properties between 500-1,000 sft increased, indicating a demand for smaller homes as well. Samson Arthur, senior branch director at Knight Frank India, suggests that the city’s diverse workforce and changing socioeconomic environment continue to drive the residential market, despite rising interest rates.
Hyderabad’s booming IT industry and expanding infrastructure have attracted people from all over the country, leading to an increase in demand for homes. The city’s relatively lower cost of living compared to other metropolitan areas makes it an attractive option for homebuyers looking for quality living at an affordable price. The real estate market growth is not limited to one district, as the study shows home sales registrations in the Medchal-Malkajgiri district were recorded at 43%, followed by Rangareddy district at 39%. Even Sangareddy is witnessing a surge in sales, with the weighted average prices of transacted residential properties increasing by 9% YoY in February 2023.
In conclusion, Hyderabad’s real estate market is flourishing, with something to offer for every budget, from affordable housing to high-value properties. The city’s real estate market is on the rise and continues to grow, with no signs of slowing down. With its booming IT industry, rapidly expanding infrastructure, and relatively lower cost of living, Hyderabad has become a popular choice for those seeking quality living at an affordable price.
The positive outlook for Hyderabad’s real estate market is not just limited to the residential sector. The city’s commercial real estate market is also showing promising signs of growth, particularly in the office space segment. Hyderabad’s office space market witnessed a 33% YoY growth in leasing activity in 2022, with over 11 million square feet of office space transacted. With the rise of the city’s IT sector and the presence of major corporations, the demand for quality office space is expected to continue to grow in the coming years.
Moreover, Hyderabad’s real estate market is expected to benefit from various government initiatives that aim to promote the city’s overall economic growth. The Telangana government’s proactive approach towards attracting investments and developing infrastructure has made Hyderabad one of the top destinations for foreign direct investment (FDI) in recent years. The government’s efforts to improve connectivity, create a business-friendly environment and streamline the regulatory process are expected to further boost the real estate market’s growth in Hyderabad. As a result, Hyderabad is likely to remain a top destination for real estate investments in the coming years.
